Where the Socialists Go Wrong

Source: Free Association
by Sheldon Richman

“When the socialists responded to Mises that planners could simulate market prices with computers and bureaucratic trial and error, Hayek said, No, they can’t because what makes true and informative prices happen — producer and consumer free choice in an environment with widely dispersed and ever-changing local and often tacit knowledge about resources and preferences — is beyond any central planner’s reach. In what Hayek called ‘the great society’ — which is marked by extended cooperation with countless strangers rather than the earlier, primitive face-to-face tribal relations — spontaneous coordination via the price system is the name of the game, literally a matter of life and death.” (01/13/23)